The US Dollar made another day higher against the Ringgit, and it is now trading at 4.2890. The recent bullish move comes after the speech by Fed’s Chairman, Mr. Jerome Powell. He said that the job market in the US is extremely heated and that this situation, despite being very good, is unsustainable. He also reaffirmed his commitment to keeping inflation under control and that he sees a possibility of a 0.5% interest rate hike for the USD at the next meeting in May. All this information coming from the FED made it clear that it will act much faster and more decisively than initially thought and this has the power to further strengthen the USD. From a technical point of view, USDMYR is testing the round number of 4.2900 whose breakout could pave the way for it to rally to 4.3650. Given the current macroeconomic scenario of interest rate hike, it seems that this will be the natural path for USDMYR.
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© 2019 High Leverage FX - All Rights Reserved.